Working While Collecting Social Security (2023)

This video discusses the Social Security Annual Earned Income Limit and working while collecting Social Security. The video discusses first year exceptions to the earnings limit, often called the Monthly Earnings Rule, or the "Grace Year" exemption, how this exemption is applied if you earn more than the monthly limit in any given month and what happens to spousal and child benefits if your benefits are suspended due to excess earnings. The video ends with a discussion on what constitutes earnings in the eyes of the SSA.

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[dougb]

This was a wonderful explanation of working while collecting; I've never seen the subject so well addressed before. It doesn't apply to me now, but it could soon. I found the explanation of where the money goes, when withheld from excess earnings, to be especially interesting and potentially useful. Thanks much.

[johnphillips]

I enjoy your videos very much and find the information very useful. One observation, the FRA for 1957 on the white board behind you should be 66 yrs. 6 months not 4 months. I'm a 1957 boomer so I know this age target very well. I'm planning to file for benefits at either 67 or 68 because I plan to keep working and want to avoid the take back penalty, also want to boost the monthly benefit a bit above the FRA amount.

[mommy-conmed]

I answered a lot of people's questions based on what I have learned from this channel and from studying the social security publication "How Work Affects Your Benefits." If any of my answers are wrong please bring that to my attention! I did it because Mr. Schmidt requested we chime in. Thank you so much for this channel Mr. Schmidt! I have learned a lot from you and have put it into action! I just received my first SS benefit check last week. I'm a dental hygienist still working 2 days per week, age 63. This comment was written in 2023. 🌞

[ourblazingworld]

pensions doesn't count! Didn't know that... its a game changer for me!

[DaveIngle]

Nice and clear explanation. I am thinking about starting Social Security benefits this year. I'll be 65 in October. I am self employed and looking at working some this year. I have two questions, the first in 2 parts: First, Can I still pay in to a retirement account to keep my monthly net income below the maximum $1, 770 AND can I also collect dividends, capital gains, and or distributions from my IRA? Second, though I believe it was answer in your explanation, I wish to work more in the summer and not at all in the fall and winter months. Because income is looked at monthly vs annually I would still need to stay under the $1, 770 during the summer. (Trying to think like a snow bird.) Thanks in advance.

[dipaknadkarni]

I receive SS spousal benefits from my wife’s death on active duty a few years ago.
I started collecting this year just before I turned 62.
I retired in the Summer of 2021 and have worked some.
I will take my full benefits at age 70.
Nearly 30 years on active duty has taken its toll on me.
Blessings.

[rclose]

The comments about H&R Block are true. After a 9 week, 2 evenings a week virtual course, you can get a job during the tax season working as much or as little as you want. It’s great.

[keithr]

This was a great explanation and applies directly to my situation. Thanks.

[garyvancamp]

😊Great video ~ nice to know that you can make $20k per year and you can still collect Social Security. Also great information regarding 401k withdrawals, they don't count as earned income. I am filing for Social Security in December so my first check should start in January, very very good information. 👍 Have a very Merry Christmas

[gailnedd]

Thank you for explaining what happens to the reduction in benefits..

[cgeatches]

I turned 70 in April of 2022. I am self employed and signed up for SS in April, 2022. Could sure use more detail for my situation.

[williammccaslin]

Correct me if I'm wrong. The way I looked at it from my career field, ( Hourly Worker) was you take 21, 000 ÷ 12 =1750 ÷ 4 = 437.5 ÷ 40 = $ 10.93 an he. If you don't wish to exceed the maximum allowable earned income, its late, but I think you get my point, an my math might be slightly off as I excluded the last 200 dlrs of the maximum allowable earned income. Thx for the vid Geoff.

[daleboris-kane]

I can't find the comment but, someone said they started SS just now so as not to miss out on 2023 8.7% COLA. Everything I read says not to worry about that... For example:
"KEY POINTS
Social Security will pay retirees a big cost-of-living adjustment in 2023.
Some fear you need to claim now in order to get that raise.
However, the calculations for future benefits also incorporate COLAs into the equation."

Found more info on this... If one is 62 yet hasn't started receiving benefits the increases DO get added to one's future base. Complicated as are all aspects of SS..

[keewee]

How/when does the SSA know how much you are making over the limit and when to withhold from your benefit payments?

[shushu]

I’d like a video on being a 1099 worker while collecting SS before full retirement age.

[WiFiGuy]

At one point in your video, you described the rule where you owe 1 dollar for every 2 dollars you exceed the earnings limit yet in your example someone who goes 1 dollar over the limit ($1771) loses a whole month of benefits. Can you clarify this, please? The reason I ask is I have a website that earns passive income that fluctuates with retail shopping cycles which may cause me to go over the limit unexpectedly. I don't want to lose a whole month of benefits because my little website has a good month every once in a while. I don't want to kill it just to hold on to Social Security either so I need to know how to track the line in the sand.

[Neal_only]

So otherwords pensions, i will have a military pension i have been receiving since my military retirement, and i will receive my social security, plus 50 % for a minor child and i am divorced. Of this is all i collect then i will have no earned income, is this correct?

[walterbazarewski]

Very helpful information. Another great video. Thanks

[daleinarizona]

I am FRA. I am still working and want to work for part/all of 2023. The letter I received from SSA said I can draw my SSI and I don’t have a cap amount. After seeing your video, I am scared of messing things up by drawing SSI until I do officially retire.

[KIRKKOCH]

This video has given me some insight to my retiring. I am 66 years old and hold a position as Operation Manager at a metal fabricating company. I know I am eligible for SS benefits but want to continue working. First; You stated in the video that once you pass the legal age for full retirement I can make as much as I want. Is there a limit as to how much I can make at this time. Second; I read a comment in another persons question. Can I add to my 401K to keep my income limit under what I need to report? Thank you for the help you have already given me and I hope you can help me more.